By Yasin Ebrahim
Investing.com -- PVH Corp (NYSE:PVH) reported fiscal fourth-quarter results that topped Wall Street estimates as its plan to accelerate the growth of its two core brands Calvin Klein and Tommy Hilfiger spurred growth despite a challenging macro backdrop.
PVH Corp was up more than 8% following the report.
The company reported adjusted Q4 EPS of $2.38 on revenue of $2.49 billion, beating estimates of $1.66 on revenue of $2.36B.
The beat comes despite a fall in gross margins amid higher costs as the company continued to make progress under its PVH+ plan, which aims to boost the growth of its Calvin Klein and Tommy Hilfiger brands.
Gross margin fell to 55.9% from 58.3% in the prior year period.
Tommy Hilfiger revenue increased 3%, while Calvin Klein revenue increased 3% compared to the prior year period.
"The benefit from price increases and a favorable shift in regional and channel mix were more than offset by higher costs and increased promotional activity due to elevated inventory levels industry-wide," the company said.
Looking ahead to 2023, EPS was guided to about $10.00, with revenue projected to increase 3% to 4% as compared to 2022.